§ 29-333. Contract performance and payment bonds.

(a)

When required; amounts. When a construction contract is awarded in excess of $50,000.00, the following bonds or security shall be delivered to the unified government and shall become binding on the parties upon the execution of the contract:

(1)

A performance bond satisfactory to the unified government, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the unified government, in an amount equal to 100 percent of the price specified in the contract; and

(2)

A payment bond to the state satisfactory to the unified government, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the unified government, for the protection of all persons supplying labor, materials, equipment or supplies to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price specified in the contract and shall otherwise comply with the requirements of K.S.A. 60-1111.

(b)

Reduction of bond amounts. The unified government administrator may promulgate regulations that authorize the purchasing director or head of a procuring agency to reduce the amount of performance bonds to 50 percent of the contract price for each bond.

(c)

Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the unified government to require a performance bond or other security in addition to those bonds, or in circumstances other than specified in subsection (a) of this section.

(d)

Suits on payment bonds—Right to institute. Every person who has furnished labor or material to the contractor or its subcontractors for the work provided in the contract, in respect of which a payment bond is furnished under this section, shall have the right to sue on the payment bond for any amount unpaid at the time the suit is instituted and to prosecute the action for the amount due the person in the manner prescribed by K.S.A. ch. 60, art. II.

(e)

Same—Where and When Bought. Every suit instituted upon a payment bond shall be brought in the district court of the county, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in any such suit.

(Ord. No. 64497, § 1(5-202), 6-27-1983; Res. No. R-100-05, § 1, 11-3-2005)